Question: answer the question please QUESTION 46 Lancaster Services, Inc. leased equipment from Phillips Corporation. Phillips completed construction of the machine on January 1, 2018. The

answer the question please

QUESTION 46 Lancaster Services, Inc. leased equipment from Phillips Corporation. Phillips completed construction of the machine on January 1, 2018. The lease agreement for the $8 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Phillip's implicit interest rate was 10%. Required: 1. Prepare the journal entry for Lancaster Services at the beginning of the lease on January 1, 2018. 2. Prepare an amortization schedule for the four-year term of the lease. Round your answers to the nearest whole dollar amounts. 3. Prepare the appropriate journal entries related to the lease on December 31, 2018. 4. Prepare the appropriate journal entries related to the lease on December 31, 2020

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

FALL, 2020 Name: 1) Lancaster Services, Inc. leased equipment from Phillips Corporation. Phillips completed construction of the machine on January 1, 2021. The lease agreement for the $8 million...

Lancaster Services, Inc. leased equipment from Phillips Corporation. Phillips completed construction of the machine on January 1, 2018. The lease agreement for the $8 million (fair value and present...

Lancaster Services, Inc. leased equipment from Philips Corporation. Phillips completed construction of the machine on January 2021. The lease agreement for the $8 million fair value and present value...

That was my first attempt at answering the question. Then, I tried finding the minimum lease payments by dividing $5.3 million by (PVA of 3.16987) when n=4 and i=10% and I still cannot get the...

Please help! Thank you Chegg! 1 American Food Services, Inc. leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021....

Exercise 15-2 Finance lease; calculate lease payments [LO15-2] American Food Services, Inc., leased a packaging machine from Barton and Barton Co construction of the machine on January 1. 2018. The...

Please answer in the same format, will up vote Exercise 15-2 (Algo) Finance lease; calculate lease payments [LO15-2] Imerican Food Services, Inc, leased a packaging machine from Barton and Barton...

wk (Leases) Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. American Food Services, Inc. leased a packaging...

American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. The lease agreement for the...

Illustrate and explain the implementation of an FIR Wiener filter.

Given: A beam with loads as shown. E = 200 GPa and I = 0.00399 m. Find: The deflection at location C. 10 kN m 3 m 20 kN -3 m B

Question# 4 : points ] Compute the Boolean expression for the given logic diagram and draw its truth table.

One way Google promoted its new version of Pixel smartphones is by marketing how the Pixel uses technology to capture a variety of skin tones, allowing people from different backgrounds to capture...

How does the concept of constitutive rules, which we first discussed in Chapter 4, help explain the misunderstanding between Ed and his manager?

How do the ambiguity and abstraction inherent in language explain the misunderstanding between Ed and his manager?

How would you suggest that Ed repair the damage done by his absence from the company banquet? What might he say to his manager? How could he use I-language, indexing, and dual perspective to guide...